Chapter 5 Flashcards
When is the contract created based on information theory?
According to the information theory, a contract is created when and where the offeror is informed that the offer has been accepted by the offeree
What are the 6 requirements for an offer to be valid?
It must be:
1) Clear.
2) Complete.
3) Made with the intention of creating a contract.
4) Made in the prescribed form.
5) Communicated to the offeree
6) Current and not have lapsed or revoked.
Advertisements and reward advertisement considered an offer?
Advertisements are not considered an offer because the advertiser does not intend for it to be an offer, it is merely an invitation to do business. However, an ad for reward is considered an offer to the public.
What are the 7 requirements for a valid acceptance?
The acceptance must be:
1) Made by the intended offeree.
2) Have the intention to contact when accepting.
3) Clear and unambiguous.
4) Match the terms of the offer.
5) Made within the prescribed time.
6) Made in the prescribed form and place.
7) Completed.
What does the expedition theory state about concluding of contracts, by post?
The expiration theory applies to contract concluded by post. It states that the contract comes into existence when and where the letter of acceptance is mailed.
When do electronic contracts come into existence?
When the acceptance is available to the offeror to read, does not matter whether the offeror has read it or not.
Explain the right of first refusal.
The right of first refusal is a contract between two people where one person agrees that should they ever decide to enter into a particular contract, they will make an offer to the other person first.
